Forex and Bitcoin news for Asia trading Friday 31 August 2018
Video: Trump wants to put $200 billion in tariffs on China ASAP
- USD/CAD popping above 1.3. Nafta talks to begin again Friday morning US time
- China PMIs for August came in a surprise better than expected
- Emerging market sell off continues
- Australian private sector credit data for July comes in at a m/m beat
- PBOC sets USD/ CNY reference rate for Friday trade at 6.8246 (vs. yesterday at 6.8113)
- Japan finance minister Aso says monetary policies are normalising in developed nations
- China manufacturing PMI 51.3
- China August non-manufacturing PMI: 54.2 (vs. expected 53.7)
- Bank Of Korea leaves its key rate unchanged at 1.5% (as expected)
- Canada Freeland says Nafta talks making progress
- President Trump speaking at a rally - comments for supporters
- RBA says high debt levels could complicate future policy decisions
- Japan Industrial Production for July (preliminary reading): -0.1% m/m (expected 0.2%)
- Japan Tokyo 'headline' CPI for August 1.2% y/y (vs. expected 1.0%)
- Japan July unemployment rate 2.5% (expected 2.4%)
- More UK data: LLoyds business barometer for August comes in at 23, from prior 29
- UK data: GfK consumer confidence (August): -7 (expected -10)
- New Zealand ANZ Consumer Confidence Index August: -0.7% m/m (previous was –1.3%)
- Trump: China is trying to devalue its currency
- BoA: Acceleration in trade war would likely result in a higher USD
- Australia data due at 0130GMT - Private Sector Credit for July
- Trade ideas thread - Friday 31 August 2018
- Trump says Europe's offer for no auto tariffs is not good enough
Negotiations on Nafta continued into Thursday evening (US time) but with no substantive announcement at their conclusion (to continue Friday). Expectations seem high for a 'deal', but there was a wobble when Canadian Minister Freeland entered talks late on the evening only to emerge again just a few minute later. USD/CAD popped 1.3000 following. There is certainly a lot of nervousness about, but like I say, there is nothing substantive to report. Perhaps a clue can be gained from Freeland not responding to questions on Chapter 19 discussions, a key sticking point.
We had data today from Japan, Tokyo August CPI (higher than estimates, still way below target) and IP (flash, July ... miss). Yen did not respond too much at all, not unusual for the currency. For the session USD/JPY is barely changed after a very small range.
Also on the calendar today, China official PMIs, both manufacturing and services beating estimates. Check out the bullets above for more, good headline results but some weakness evident in the details.
EUR, CHF, GBP have all had small ranges only against the USD and are little net changed.
NZD/USD added a few points early but has since given most of it back. Only a 30 or so point range though. Of specific note for the NZD today: Fonterra dropped its milk price forecasts and consumer confidence edged lower a touch.
AUD/USD has had a very small range with non impactful news and data today (see bullets above). It is back to its lows hit during the leadership scuffle and for the week as I post.
Still to come:
The back end of next week could be volatile. President Trump has said he wants to move ahead with tariffs on China (the next 200bn worth) as soon as the public comment period concludes. Comments close September 6, Thursday next week.
